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Technology Stocks : Ampex Corp: Digital Storage

AMPX 11.15

-14.4%

11:51 AM EST

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To: Michael Brian who wrote (2958)	6/3/1997 11:43:00 PM
From: W. Thompson	of 3256

I'm not doubting you on your Segate/AXC analysis I'm just not sure I agree. Anyway, Here is something I stole from the APM thread I thought some of you might enjoy about WDC. I just got off the phone with Craig Crisman (CEO/CFO of our APM). Good call, informative, I reiterate STRONG BUY. Here's a summary and I'm giving it to you via memory and scratch notes, it was not tape recorded: Kelly: "What about Oz leaving for another componant manufacturer?" Crisman: "I never new Oz. He was part of Applied before I came on board. He hasn't been a part of Applied since 1994." (Oz Findingsland just got a job at another company and the media made it sound as if he left APM for this other place. In all reality, he's been either out of work or at another company for the last 2 years before taking his new post. The media wrote it that he "left" APM. Now you know the facts.) Kelly: "What's the impact of the high end disk drive "slow down" on APM?" Crisman: "None. The high end doesn't represent the biggest part of the market. We deliver to the biggest part of the mareket. Seagate has had a 65% market share on that market. It was only a matter of time before competitors ecthed into it. No one can hold onto a 65% market share in this business. It's a natural and appropriate." (As per evidence of WDC not having any problems with this quarter's earnings but SEG is...although just slightly.) Kelly: "Any cancelling of orders? Last time we talked you said that you were booked through September?" Crisman: "No cancellations. This quarter could be good." (Reading between the lines folks; he knows that they are kicking ass.) Kelly: "Any plans to buy back shares at the current low price?" Crisman: "No. Our available cash is earmarked for capital expenditures." (He then added something about a debenture that was exercized that would make a "buy back" rather stupid at this time.) Kelly: "My biggest fear about APM and I hope you take this as a compliment, is that you'll leave at somepoint." Crisman: "I have a 5 year contract that started in 1995." (That's vintage Crisman, sticking to the facts.) We then talked about WDC announcing today that they "feel comfortable" with earnings estimates. Crisman said,"Why would they do that?" I asked, "Why do you say that?" He said, "Because there's 3 weeks left in the quarter. The market is driven by fear. People respond mostly on bad news. People most likely won't respond to that. Wait 'till earnings and let people see the facts. It all works out over time with the evidence." (My personal opinion is that WDC executives were trying to level the playing field from all the crap and negativity that has dogged the disk drive sector. Crisman is also probably right, that it ain't going to change the market, except for a temporary blip. But end of July should.)

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